Unifreight Africa HY volumes jump 19%

TRANSPORT and logistics company, Unifreight Africa, says its volumes for the half year
period to June 2022 spiked by 19 percent ahead of the same period last year and five
percent ahead of budget targets.

The Zimbabwe Stock Exchange (ZSE) listed firm is a transport holding company offering
services in logistics, freight and passenger services to clients in sub-Saharan Africa.

The company has since 2020 pursued new revenue streams, investments in new vehicles
and disposed of some assets, setting a firm foundation for business sustainability.

In a statement accompanying the financial results for the period ending 30 June 2022,
group chairman, Mr Peter Annesley, said: “The company has had a positive start to the
year, with half-year volumes 19 percent ahead of last year and five percent ahead of
budget. The fundamentals are sound and the business is on a solid footing.”

On financial performance, the transport firm reported inflation adjusted earnings before
interest tax and depreciation of ZWL$396 million, which is 76 percent above prior
ZW$225 million.

“The group has been monitoring costs as margins continued to be eroded and this has
resulted in this healthy increase from prior year,” it said.

“Cumulative Q2 Sales in real terms were on a par with last year but 10 percent behind
budget indicating that we are losing ground on yield. However, we have been able to
contain costs within budget and maintain a healthy bottom line,” said Mr Annesly.
He added that cumulative net profit as a percentage of revenue is sitting at 10.9 percent,
which is above industry average, but unfortunately below expectations.

The transport firm said it was pleased with progress achieved during the period under
review, particularly the acquisition of new revenue earning equipment, and the growth in
the balance sheet in real terms.

It commended monetary authorities for instituting new economic measures, which are
generating positive results.

“We are also optimistic with regard to the positive changes in the monetary policy, with
the view that if implemented correctly, it is in the favour of formal business flourishing,
while the playing field is leveled to include the informal market in the economy.
“We are rigorously pursuing new revenue streams, whilst maintaining and strictly
monitoring costs and are confident that we will end 2022 with a favourable set of
results.”-The Chronicle